Judge queries legality of move by Maritime NZ

A High Court judge has questioned whether the head of Maritime New Zealand broke the law by axing a Nelson company as a safe ship monitor.

The judge's concern is the fourth time this year MNZ director Catherine Taylor's organisation has been accused of not following marine rules or laws she administers.

"There must be a real question whether the director acted lawfully," Justice Miller said in granting an interim injunction by ship surveyors, Survey Nelson Ltd, to overturn Ms Taylor's decision.

Survey Nelson director Jean Reynolds said the company had been subjected to a witch-hunt and MNZ's decision "buggered our business ... the damage has been done".

All New Zealand commercial ships are surveyed by companies such as Survey Nelson to ensure they operate safely under a MNZ-administered scheme.

As a result of MNZ's decision, the company lost clients and was "looking to shift offices" to save money. It has also received support, including an email from Oscar award-winner, Dan Hennah, for advice it gave for the movies King Kong and Waterhorse.

Mrs Reynolds believed MNZ went after the company after her husband Terry, also a director, clashed with senior MNZ figures.

She said in 2006 the company was ranked as one of the better Safe Ship Management companies but "suddenly they went for our throats".

Ms Taylor rejected that allegation and said it had never been raised with MNZ.

Survey Nelson had been targeted only in the interests of maritime safety and MNZ was confident it had acted lawfully, she said.

After three audits, MNZ appointed reviewers to "conduct an oversight" of Survey Nelson and in September, Ms Taylor said she planned to revoke her approval of the company.

On November 20 Ms Taylor said she agreed with her manager of Maritime Services, Sharyn Forsyth, that Survey Nelson failed to adequately deliver in safe ship management and axed it from the system.

MNZ also told the company's competitors and clients of its decision. The company had formally warned MNZ it was acting unlawfully before the case went to court.

On November 26 the company fought the decision in court and MNZ was slapped back by Justice Miller's decision, issued in writing this week.

Mrs Reynolds attended the injunction and said Justice Miller criticised MNZ for language that was "pure consultant speak ... and meaningless".

Justice Miller said it was "plainly arguable" Ms Taylor did not use specific grounds for cancelling her approval of the company under one section of law she was relying on.

It was also arguable MNZ could not rely on another section of law it used to justify its decision, the judge said.

The facts Ms Taylor relied on lacked any clarity and MNZ's complaints were remarkably scattered and seemed to be putting the whole conduct of the company and its directors "in issue".

Mrs Reynolds said the case would go for judicial review unless MNZ decided to talk to the company "as we have not slammed any doors in their faces".

If the company won, it would "most definitely" seek damages from MNZ.

THE STORY SO FAR

March 24, 2009: Marlborough harbourmaster Alex van Wijngaarden accuses Maritime New Zealand director Catherine Taylor of breaking her own rules by awarding a senior qualification to a pilot previously caught cheating in exams. Ms Taylor says she was fair to all parties.

March 25: NZ Maritime School director Tim Wilson accuses Ms Taylor of breaking MNZ rules by allowing uncertified examiners to test senior seafaring students for qualifications allowing them to control passenger ships. Ms Taylor says the course was "beyond reproach".

April 6: Auckland surveyor Hugh Munro accuses MNZ of bending international maritime safety rules by allowing holes to be bored in a ship's bow to make it shorter than it is. MNZ says the ship complied with all standards.

May 28: After a near catastrophic shipping accident, the Transport Accident Investigation Commission says MNZ failed to complete a safety management system for Port Taharoa – a port MNZ was in charge of. MNZ enforces the safety system on other port operators. MNZ said it would comply by August.

- © Fairfax NZ News